Tags: Brazil | economy | interest | rates

Brazil Economists Reduce Growth Outlook for This Year and Next

Monday, 16 Dec 2013 06:27 AM

Economists covering Brazil cut their economic growth forecasts for a second straight week, as domestic demand shows signs of weakening, according to a central bank survey.

The second-biggest emerging market will grow 2.3 percent this year and 2.01 percent in 2014, down from the week-earlier estimates of 2.35 percent and 2.10 percent, respectively, according to the median forecasts in a Dec. 13 central bank survey of about 100 economists.

Brazil’s October retail sales rose 0.2 percent, less than economists forecast, as inflation and the largest interest rate increase among major economies since April damped consumer demand. The economy contracted 0.5 percent in the third quarter.

Economists expect the central bank to raise its key interest rate by 0.5 percentage point to 10.5 percent in 2014, the survey found. Central bank President Alexandre Tombini last month raised the benchmark rate for the sixth straight meeting, pushing it to 10 percent.

Prices, as measured by the IPCA index, will rise 5.7 percent this year and 5.95 percent in 2014, the survey showed. The central bank targets inflation of 4.5 percent, plus or minus two percentage points.

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Economists covering Brazil cut their economic growth forecasts for a second straight week, as domestic demand shows signs of weakening, according to a central bank survey.
Brazil,economy,interest,rates
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2013-27-16
Monday, 16 Dec 2013 06:27 AM
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